Crude oil retreated on Tuesday from recent gains that lifted prices to a two-month high, as some energy traders remained skeptical about the speed and strength of China’s economic reopening.
In the US, business activity decreased in January for the seventh month in a row, although business confidence strengthened at the beginning of the new year.
Nymex first month crude (CL1:COM) for March delivery agreed -1.8% at $80.13/bbl, and March Brent crude (CO1:COM) closed -2.3% to 86.13 USD/bbl; also, Nymex Natural Gas (NG1:COM) ended February. -5.5% to 3.258 USD/MMBtu.
Energy (XLE) was among the worst performers on Tuesday in the S&P sector, -0.4%.
ETFs: (NYSEARCA: USE IT), (BNO), (UCO), (SCO), (DBO), (DRIP), (GUSH), (USOI), (NRGU)
JP Morgan raised its outlook for Chinese crude demand but maintained its 2023 average price forecast of $90/bbl for Brent.
“Without any major geopolitical events, it would be difficult for oil prices to exceed $100 in 2023 as there should be more supply than demand this year,” the bank said.
OPEC+ is expected to leave production levels unchanged when the group meets next week.
Starting on February 5, the European Union will introduce a ban on the import of petroleum products produced in Russia, and a price cap on Russian petroleum products will come into effect.